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Major changes loom for taxi and private hire drivers as Government reveals CCTV consultation and cross-border licensing proposals
The Government has confirmed that it is considering measures to discourage taxi and private hire drivers from obtaining licences outside the areas where they primarily work, as part of wider plans to reform England’s fragmented licensing system.
In a formal response published by Parliament today, ministers said drivers should ordinarily be licensed by the authority covering the area in which they undertake most of their work.
The position follows a Transport Committee inquiry that raised concerns about inconsistent licensing standards, cross-border enforcement and the financial consequences of extensive out-of-area working.
The Government acknowledged that differences in licensing fees, processing times and local requirements had created incentives for drivers and operators to obtain licences from authorities outside their principal operating areas.
However, ministers stopped short of committing to a statutory requirement that drivers must obtain licences where they predominantly work.
Instead, the Department for Transport will consider different approaches during the development of its proposed taxi and private hire legislation.
The response also confirms that the Government intends to publish the outcome of its consultation on transferring licensing responsibilities to local transport authorities by the end of 2026.
That assessment will consider alternative regulatory structures, including arrangements designed to improve consistency between licensing and enforcement responsibilities.
Ministers acknowledged concerns about cross-border working but warned that substantial restrictions could reduce vehicle availability, increase passenger waiting times and limit access to transport.
The Government therefore intends to assess potential changes against their consequences for passenger safety and service provision. The response also provides further details about proposed national licensing standards.
Ministers confirmed that core safety and safeguarding requirements will be established nationally, although some local flexibility could remain where justified by particular circumstances.
The Government intends to include safeguarding training and driver competence within the forthcoming national standards consultation. Proposals will also examine English language proficiency and disability awareness training, including appropriate refresher requirements.
A consultation on mandatory in-vehicle CCTV will form part of the same exercise, which the Government intends to publish before the end of 2026. No decision has been made to require CCTV in every licensed taxi or private hire vehicle. Ministers said any requirement would need to balance safeguarding benefits against privacy rights and data protection obligations.
The Government also confirmed progress towards a national licensing database designed to help authorities establish drivers’ licensing histories and identify previous refusals, suspensions and revocations.
The system would allow licensing authorities to access relevant information about drivers licensed elsewhere, reducing the risk of unsuitable applicants obtaining licences from another authority. However, ministers have not established an implementation date.
The Government expects the database’s discovery phase to begin during autumn 2026 and conclude by spring 2027.
The response also addresses the powers available to councils dealing with drivers licensed outside their areas.
Ministers referred to provisions in the English Devolution and Community Empowerment Act intended to enable immediate licence suspensions on public safety grounds, regardless of the issuing authority.
Further guidance will be developed to support consistent use of those powers.
The Government also intends to consider wider enforcement arrangements, including how councils might recover costs associated with regulating vehicles licensed elsewhere.
On licensing administration, ministers declined to commit to national processing-time benchmarks. The Transport Committee had recommended consistent performance targets for applications, renewals and licence variations. The Government argued that fixed deadlines could place pressure on licensing authorities and risk prioritising speed over safeguarding.
Ministers also expressed reservations about imposing a single national minimum requirement for wheelchair-accessible vehicles. They argued that differences in local demand, vehicle ownership and operating patterns could make a uniform fleet percentage ineffective in ensuring accessible services are available when required.
Instead, the Department for Transport will explore alternative approaches to increasing wheelchair-accessible vehicle provision.
The response was received by the Transport Committee on 14 September but was published publicly on 20 October.
Transport Committee Chair Ruth Cadbury urged ministers to address the consequences of extensive out-of-area working for local accountability and public confidence.
The Government intends to publish a draft Taxis and Private Hire Vehicles Bill during the current parliamentary session.
For operators and drivers, the immediate significance is the timetable for forthcoming consultations rather than any immediate change to licensing obligations.
The eventual reforms could affect where drivers obtain licences, the training required to remain licensed, vehicle equipment costs and the ability of councils to enforce standards against drivers licensed elsewhere.
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